The Federal Government of Nigeria (FGN) will auction four bonds worth N360 billion to the highest bidder, according to a proposal released by the Debt Management Office (DMO).
The DMO released a statement stating that the initial offer is a N90 billion April 2029 FGN bond with an interest rate of 14.55% annually (10-year re-opening).
The second offering is a N90 billion June 2033 FGN bond with an interest rate of 14.70% annually (10-year re-opening). Additionally, there is the N90 billion June, 2038 FGN bond, which has a 15-year reopening period and an interest rate of 15.45% annually.
The fourth offering is a June 2053 FGN bond with an interest rate of 15.70 per bond, also worth N90 billion.
“Auction date is Dec.11 and settlement date is Dec. 13. They are offered at N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.
“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned. plus any accrued interest on the instrument,” the DMO said.
It said that interest on FGN bond was paid semi-annually while the bullet repayment was on the maturity date.
The DMO gave the assurance that FGN bonds like all other FGN securities, were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustees Investment Act.
“Qualify as government securities within the meaning of Company IncomeTax Act and Personal Income Tax Act for tax exemption for pension funds among others. Nigeria Eurobond Slumps after CBN Resumes OMO Auction
“They are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange,” it said.
